ICESAVE - What is covered?

csiman

Andrew64 wrote: »

What do you all make of this article? Is the Icelandic government thinking of doing the dirty on us?

Iceland PM warns it's 'every country for itself'

"In an interview with The Telegraph, Mr Haarde said Landsbanki's foreign operations – including Icesave – had been separated from the domestic bank and it was likely they would be sold off. He said it was "every country for itself" in the worst crisis to hit Iceland for a decade. He would not deny reports that the government officials now controlling Landsbanki would allow Icesave to fail."

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/3153061/Financial-crisis-Iceland-PM-warns-its-every-country-for-itself.html

Blimey! They must have had unbelieveable problems a decade ago then!

Eezageeza

Andrew64 wrote: »

What do you all make of this article? Is the Icelandic government thinking of doing the dirty on us?

Well I'm no lawyer, but Icesave is regulated and I would think that they can't just ditch their responsibilities.

nachovx

From the report I heard on R4, it seems as if they let Icesave go insolvent they could fail to pay the Icelandic part of the compensation - leaving customers in the UK getting the difference from £16,000 up to £50,000. If you have less than £16,000 or more than £50,000 you may well lose it. Domestic savers in Iceland won't lose a penny though - what a country, maybe they deserve to be flattened.

miller

nachovx wrote: »

From the report I heard on R4, it seems as if they let Icesave go insolvent they could fail to pay the Icelandic part of the compensation - leaving customers in the UK getting the difference from £16,000 up to £50,000.

This might be wishful thinking on my behalf, but the FSA would get an absolute blasting if that was the case. Jim McFall of the treasury select committee has previously mentioned UK consumers have a tough enough job working out how the FSCS worked as it stands.

Pandapal

Sounds like declaring Landbanki insolvent could be an attractive option for the Icelandic government as sources seem to be saying that it lets them off the hook with the compensation scenario rather neatly, by all accounts, anyone else heard this? Don't really understand why? Given the problems they've got already finding finance, it wouldn't be a big surprise would it..

I assume this means that if you have £50k in you would only get £34k back but I am not sure how it works if you have less than £16k or somewhere inbetween, anyone know?

Pandapal - a very disillusioned saver just phoned up by Barclays to see if I am happy with my banking arrangements - no comment:mad:

domjones

Let me I urge Icesave account holders (I am one) to work together and get some vigorous lobbying done - use your MP etc etc - I like many UK investors put money into Icesave believing it to be covered by the 35,000 Sterling UK banking guarantee. This view was based on a range of UK media sites, the bank itself, the UK banking regulator and the UK government. It appears that the first 16k is not covered by the UK but by the near bankrupt Iceland government. If Iceland itself goes bust I intend to sue all the (solvent) parties above for negligence and lobby the UK goverment for compensation given that they have not been sufficiently clear on what protection was available. I encourage all Icesave account holders to do the same.

The Iceland government now appears to be acting in the interest of domestic savers at the expense of foreign savers. In the worst case of Iceland declaring itself bankrupt we need to lobby the UK government to ensure that Iceland undertakes to offer compensation over a period of time - e.g. in long dated Iceland bonds, shares in Icelandic companies. Over time, assuming some economic recovery, these investments should bear fruit.

john5001

I thought I read that other Scandanavian countries had an agreement to assist in this kind of crisis.
But if Iceland goes bust then really its up to the Iclandic government....unless UK steps in.

eric7ru

Pooky23 wrote: »

I've managed to get thru to IceSave. They themselves do not know what is going on. Apparently a statement will be released in the next few hours. She did tell me that the stop on withdrawls/deposits is for today only. I have a fixed rate savings account maturing next week and last week I arranged for it to be transferred to my Easy Access Account. She tells me this will happen as arranged and that I will be able to withdraw my money next week. She also confirmed that my money IS safe. Trouble is, I don't really believe what she is telling me....

there was encouraging words from UK CEO .. about in unlikely situation ....wonder where is he now?